Oct 22, 2011

Posted by in Penny Stock | 0 Comments

Is There A Trustworthy List Of Top Penny Stocks For 2011?

Finding a legitimate list of the top penny stocks for 2011 is impossible

Top Penny Stocks 2011Searching for the top penny stocks for 2011 is usually going to be a futile search. While it can work, there are simply too many variables against it.

Instead, you should take the road less traveled and invest in under the radar companies. If a company is being featured or talked about a lot, avoid it. All the best traders do.

Instead, go with lesser known firms that have high profit margins, low levels of debt, and good long term prospects. Sure, this is easier said than done, and it will take some effort to find these companies. However, if you simply do nothing but avoid these mass media “top penny stocks for 2011” tips, you will be ahead of 95% of penny stock traders.

This will take time and energy, which is something the “get rich quick” crowd looking for the top penny stocks for 2011 are not willing to do. However, if you take the time to analyze a firm’s financial statements, you will be able to dramatically limit your risk.

The other option-and just as viable-is to become a day trader. There is nothing inherently wrong with this one. It just takes more energy, and for most traders is a bit more difficult and time consuming than value investing. However, if you love the game of buying and selling, it just might work.

Keys to look for when searching top penny stocks for 2011.

The main thing to do here is to become good at analyzing stock charts. The key is to find highly liquid companies that are going to have quick surges in price. If the company is not liquid, then definitely avoid it.

The other key to successful day trading is finding a reasonably priced broker. Once you get going, you will find that you are probably making lots of trades on a daily basis. Therefore, the less you have to pay per trade, the greater your profit margins will be. This might sound like common sense, but it is very important that you take your time and analyze the different brokers thoroughly before committing to one. This could be the difference between success and failure in the penny stock world.

To sum it all up: to make good money with penny stocks, you need to first decide what your strategy is going to be-day trading or value investing. Once you have done this, then really become an expert at that particular model. This way, you will always spot opportunity, which you would not do if you were dabbling in both fields. So stop wasting time looking for the top penny stocks for 2011, and instead educate yourself.

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